Determine the appropriate number of kanbans for the following production scenario:
Production time = .7 hours
Transit time = .5 hours
Wait time = 1.9 hours
Demand per hour = 50 units
Safety stock = 10%
Container size = 20
A) Round up to 17
B) Round up to 9
C) 3.1
D) 2.5

Question

Quizplus · Accepted Answer

The number of kanbans needed can be calculated using the formula: Number of Kanbans = (Demand during lead time + Safety stock) / Container size. Lead time = Production time + Transit time + Wait time = .7 + .5 + 1.9 = 3.1 hours. Demand during lead time = Demand per hour * Lead time = 50 * 3.1 = 155 units. Safety stock = 10% of Demand during lead time = 0.1 * 155 = 15.5 units. Total demand to cover = Demand during lead time + Safety stock = 155 + 15.5 = 170.5 units. Number of Kanbans = 170.5 / 20 = 8.525. Rounding up gives 9.

Determine the Appropriate Number of Kanbans for the Following Production